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Tip: Do You Know What’s Included In A Real Estate Agreement Of Purchase and Sale?

When an written offer to purchase a home is signed by both buyer and seller it becomes a binding contract or Agreement of Purchase and Sale on all concerned. Therefore the Agreement must include a number of specific items, such as:

  • Date of acceptance, full legal names and addresses of seller and buyer. 
  • The property’s municipal address and legal description.
  • The amount of money paid as deposit and the third party, commonly the listing Broker, holding the deposit "In Trust".
  • The final "Purchase and Sale"  price.
  • If applicable, a condition (or contingency), normally for ten days from acceptance of the offer, in order for the buyer to secure financing. This condition spells out the terms of financing by the buyer, i.e.: the amount of down payment, and financing arrangements for the balance of the purchase price. The buyer usually states the highest interest rate that he is willing to pay. If the buyer cannot secure financing at this rate or less, the buyer usually retains the right to cancel without a penalty. 
  • Conditions (contingencies), if any, such as review by lawyer, home inspection, financing, or the sale of buyer’s present home. There is normally a specific time period affixed to these condition types of conditions.
  • Important provisions and terms, including the list of items included and not included with the sale, stipulation that title must be free and clear.
  • Closing date, the date ownership of title will change hands. This will usually be a business day, when the Registry office is open. The majority of the time this will also be the moving date unless other specific arrangements were made in the Agreement for continued occupancy after the "closing date".

Whether you are buying or selling, we can help you negotiate the best terms of sale for your particular situation. Call or e-mail us today for assistance on all your real estate needs.

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Steven Porter ABR
Salesperson/Accredited Buyer Representative
Direct: 905-875-2582, Office: 905-338-9000
e-Mail: steven@stevenporter.ca

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